Lessons From Indonesian Mines
May Help Freeport With Phelps

Congo Is Major Challenge,
But Acquirer Has Tackled
Insurrections, Turmoil

By

Russell Gold and

Mark Heinzl

Updated Nov. 21, 2006 12:01 a.m. ET

For nearly two decades, Freeport-McMoRan Copper & Gold Inc. has kept the Grasberg mine in Indonesia churning out metals amid insurrections and political turmoil. Whether these management skills can be transferred halfway around the world to Congo will help determine whether its $25.55 billion bid for Phelps Dodge Corp. is a long-term success.

High copper prices, surging demand from China and a dwindling number of easy-to-execute megamines are leading companies back into unstable nations like the Democratic Republic of...